The government has announced a crackdown on “cowboy builders”, but what does it actually mean for the industry?
With data from Citizens Advice finding that more than one in four households who carried out home improvements work in the past 18 months experienced problems, with more than 1 in 3 (37%) of these facing extra costs, the government says it is closing loopholes that have let “unscrupulous operators fleece households and intimidate people already struggling with debt”.
Launching this month, a government supported scheme will help people identify and hire trusted traders with confidence. Businesses who sign up to the Approved Code will be able to demonstrate that they meet higher standards of customer service, transparency and dispute resolution. There will also be a new system to protect people’s money during building projects with payments directly linked to key project milestones.
Prime Minister, Andy Burnham said: “Cowboy builders don’t just rip people off. They leave families with months of stress, the disruption of unfinished work, and that horrible feeling of being taken advantage of. Not only that, but they give the vast majority of decent, hardworking tradespeople a bad name.
“So we’re putting the cowboys out of business. These changes mean you’ll now have the option to make sure your money is held safely and released bit by bit as the work gets done.
“It’s the latest in our series of everyday fixes to give people room to breathe and make Britain fairer. We’ve taken on subscription traps, fake discounts, and now we’re coming for the cowboy builders. Enough is enough.”
Voluntary scheme
The Federation of Master Builders (FMB) welcomed the accouncement but has concerns about another voluntary scheme without teeth. Brian Berry, Chief Executive of the FMB said:”The Prime Minister’s push to crackdown on rogue builders is a great move for the industry. However, it is a real concern that this is just another voluntary programme without regulation behind it. That said it signals a positive change in the Government’s commitment on the issue. We look forward to seeing more detail and working with the government to deliver the best result for builders and consumers alike.
“In the long term the government should be looking at a compulsory licensing scheme for building companies. Currently anyone can call themselves a builder with no minimum competence level required to run a building company. Voluntary schemes have never filled the gap for good regulation that protects both reputable builders and consumers. Without statutory licensing any voluntary scheme, however well intended, is likely to struggle to gain traction.”
The National Federation Builders (NFB) does not agree that a licensing scheme would be the right move and prefers a Digital Building Passport (DBP). In response to the government’s announcement, Richard Beresford, Chief Executive of the NFB, said: “There is a long tail in construction, and we are therefore broadly supportive of measures to encourage better practice and support consumers. However, there does feel to be a level of replication as Professional Associations such as the National Federation of Builders already provide a code of conduct, resolution service and quality marks, such as NFBs Heritage Approved Contractor Mark (HACM).
“We therefore hope this move is the first step to better-digitise industry and culminates in every building receiving a Digital Building Passport (DBP). This passport would serve as a building’s ‘logbook’, record all construction works, alongside those delivering them and be publicly searchable. A DBP would ensure bad actors have fewer places to hide, consumers were given legal platforms for challenge, tools to help choose the right builder and create a mechanism for industry to report failure which would be subsequently investigated.”
